10-24-2007

LEASE MODIFICATION
LEASE # 27648

300X 667 fififf£559

THIS AGREEMENT, Made and entered into this 24th day of October, 2007 , by and
between O. E. Burge, a married man dealing in his sole and separate property, whose
address is Rd. 3 Box 33, Cameron, WV 26033 parties of the first part, hereinafter called
"Lessors", and CHESAPEAKE APPALACHIA, L.L.C., an Oklahoma limited liability
company, the surviving entity of the merger with Columbia Natural Resources, LLC
(formerly known as Columbia Natural Resources, Inc.) of 900 Pennsylvania Avenue,
Charleston, West Virginia 25302, party of the second part, hereinafter called "Sublessee" as
acknowledged and agreed by Columbia Gas Transmission Corporation, hereinafter called
"Sublessor";

WITNESSETH:

THAT WHEREAS, by agreement dated May 3L 1954 , George N. Yoho granted to
The Manufacturers Light and Heat Company , predecessor in title to Sublessor, as lessee
thereunder, an oil and gas lease covering a tract of land containing 54.00 acres, more or less,
situate in Liberty District, Marshall County, West Virginia, and recorded in the Clerk of the
County Commission in Book 299 at Page 71; and

WHEREAS, said agr ee m e nt dated , was modified by agreement

dat e d by and , pr e dec e ssor

in titl e to Columbia Gas Transmission Corporation, to provid e for the production and storage
of natural gas, and record e d in the Clerk of th e County Commission of County in Book

at Page , h e r e inaft e r th e "L e as e " as modified; and

WHEREAS, by sublease agreement dated September 2, 2004 and recorded in the
Offices of the Clerks of the County Commissions of Marshall and Wetzel Counties, West
Virginia in Deed Book 642, at page 281 and Book 84-A, at page 129 respectively, Columbia
Gas Transmission Corporation granted to Columbia Natural Resources, LLC (predecessor in
title to Chesapeake Appalachia, L.L.C.), all rights necessary for the PRODUCTION OF OIL
AND GAS in all formations EXCEPT the interval from 250 feet above the top of the
Greenbrier Limestone (inclusive of all Maxon sands) to 50 feet below the base of the Pocono
Big Injun formation being reserved or operated for storage, hereinafter the "Sublease" and
which Sublease has been modified and amended by that certain agreement dated June 1, 2007,
and effective as stated therein (the "Sublease Agreement");

BOOK 667 mffl)

WHEREAS, Lessors are now the owners of the oil and gas rights underlying the land
covered by said Lease that is situate in Liberty District, Marshall County, West Virginia; and

WHEREAS, Lessors and Sublessee, for their mutual benefit, with the consent of
Sublessor, desire to amend and modify said Lease agreement in order to facilitate the
formation of drilling units.

NOW THEREFORE, in consideration of the premises and the sum of One Dollar
($1 .00) paid by the Sublessee to Lessors, the receipt of which is hereby acknowledged, and of
the covenants hereinafter contained, Lessors and Sublessee hereby supplement and modify
said Lease as follows, to-wit:

DELAY IN MARKETING: In the event that Sublessee does not market producible
gas, oil or their constituents from the Leasehold, or lands pooled/unitized therewith, Sublessee
may continue to pay Delay Rental at the rate of Five Dollars ($5.00) per acre annually until
such time as marketing is established, or until the end of the Sublease term, as it relates to the
acreage described herein, if marketing is not established by that time.

UNITIZATION: Lessors grant Sublessee the right to pool, unitize, or combine all or
any part of the Leasehold with any other land, leased or unleased, whether owned by
Sublessee or others, to create drilling or production units either by contract right or pursuant
to governmental authorization. In the event of the unitization of the whole or any part of the
Leasehold, Sublessee shall, either before or after the completion of a well, record a copy of its
unit operation designation in the county in which the Leasehold is located. Sublessee is
granted the right to change the size, shape, and conditions of operation of any unit created,
without the consent of Lessors. As to such a unit, Lessors agree to accept and receive out of
the production or the proceeds from the production of such unit, such proportional share of
the royalty from each unit well as the number of acres in the Leasehold which may be
included from time to time in the unit bears to the total number of acres in the unit.
Otherwise, the drilling, operations for drilling or any operations in preparation for drilling, or
any production from a well on such a unit shall have the same effect upon the terms of this
Lease, as amended and modified hereby, as if the operations or well were on this Leasehold
itself, except for the FREE GAS clause, of which the Lessor acknowledges is hereby
expressly released and terminated by this Lease Modification.

SHUT-IN: In the event that production of oil, gas, or their constituents is interrupted
and not marketed for a period of six months, and there is no producing well on the Leasehold,
or lands pooled/unitized therewith, Sublessee may thereafter, as Royalty for constructive

book 667 ?age561

production, pay a Shut-in Royalty equal in amount and frequency to the Delay Rental until
such time as production is re-established and said payment shall maintain the above-
referenced lease and modification in full force and effect to the same extent as payment of
Royalty. During Shut-in, Sublessee shall have the right to rework, stimulate, or deepen any
well on the Leasehold or drill a new well on the Leasehold in an effort to re-establish
production, whether from an original producing formation or from a different formation. In
the event that the production from the only producing well on the Leasehold is interrupted for
a period of less than six months, the above-referenced Lease and Modification shall remain in
full force and effect without payment of Royalty or Shut-in Royalty.

SUBLESSEE shall have the right to perform geophysical studies through the use of
seismic research and other means and methods not restricted to current technology.

LESSOR ratifies the aforesaid Lease dated May 3L 1954 and modification agre e ment
dat e d as hereby amended and modified, and acknowledges that it is a

valid and subsisting Lease and shall remain in full force and effect according to the terms and
tenor thereof unless otherwise specifically amended hereby.

This agreement extends to and is binding upon the parties hereto, their respective
heirs, successors, administrators, executors and assigns.

WITNESS the following signatures and seals all as of the day and year above first

written.

JAH PEST

MARSHALL County 01:43:46 PM
Instrument Ho 1251681
Date Recorded 04/14/2008
Dooierrt Type 0&B
Book-PWB 667-55V
Ree/Preserve $5.00 $1.0u

O. E. Burge

COLUMBIA GAS TRANSMISSION CORPORATION

BOW

667 pagi562

ACKNOWLEDGMENT

STATE OF

COUNTY OF )lltf&[faU^ , to-wit:

On this the 20 gT) , before me, \tfcti~ « a

Notary Public, came O. E. Burge, a married man dealing in his sole and separate
property to me known (or to be satisfactorily proven) to be the individual(s) described in, and
who executed the foregoing instrument, and acknowledged that they executed the same for
the purpose therein contained.

In witness thereof, I hereto set my hand and official seal. ,

^iLtT^ OFROAl SEAL

- gnmoFwesr Virginia

NOTARY PUBLIC
AARON R YOST
m SPRING VALLEY DRIVE
•WKELEY SPRINGS, WV 25411
•^COMMISSION EXPIRES NOVEMBER 7, 201S

My commission expires on: / l&l S

ACKNOWLEDGMENT

STATE OF WEST VIRGINIA
COUNTY OF KANAWHA

}

} ss.

}

On the day of ^Jj^tjj^. , in the year 20$, before me, the

undersigned, a Notary Public in and for said State, personally appeared
^?W/tXV \ (U/]p6 ^ft^A^^ personally known to me or proved to me on the basis of
satisfactory evidence to be the individual(s) whose name(s) is(are) subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the
person upon behalf of which the individual(s) acted, executed the instrument.

Notary Public

This instrument was prepared by
Chesapeake Appalachia, L.L.C.
900 Pennsylvania Avenue
Charleston, WV 25302

OFFICIAL SEAL
^■«r £>X NOTARY PUBLIC
Pl^rvi^lj STATE OF WEST VIRGINIA
fefeS^dbSsrl Lisa U Snyder

1332 1 2 WV Avenue
Dunbar, WV 25064
_ tfy Commission Expires November 17. 201 6 :

STATE OF WEST VIRGINIA, MARSHALL COUNTY, SCT:

lerk of the County Conxion of sa,d County, do hereby certify that the annexed writing, bearing

I JAN PESXfrOerk of the County Commission oi sata county, uu ,
&tfzl^ MiSkJ^^Z^ P—tedfor ,nd by me, admitted .record i m my office u^e
a . m *h* mrties therein named this ^ J-%W- ~M Q £U^M^< J

date on the

above certificate as to the parties therein

CPS SM 12-06

TESTE: